'Disc to Digital' Transition Successful in Most Key European Markets, Says Report

Article excerpt

A newly-published report into the European home entertainment market highlights how digital has drastically replaced physical consumption in the region.

The report was prepared by the Digital Entertainment Group Europe and covered 23 countries between 2010 and 2016, with a focus on nine key markets.

The key findings reveal that consumer spending on home entertainment in Europe exceeded 2010 levels for the first time in 2016 with [Euro]9.67bn, after falling to a low of [Euro]8.42bn in 2013.

The data shows that spending on physical media has dropped by almost 50% during this time period, from [Euro]7.7bn in 2010 to [Euro]3.9bn in 2016.

However, by 2016 this lost revenue had been offset by combined spending on digital video, which was at [Euro]731.5m in 2010, but grew to [Euro]5.4bn in 2016.

These figures combine OTT (over the top) spending ([Euro]4.4bn in 2016) and purchases via set-top-boxes or as part of a wider pay-TV package ([Euro]996m in 2016).

The study says: ”The transition from physical to digital consumption has worked through in most of the key markets and is providing new opportunities for video distributors in territories large and small, as infrastructure continues to improve and stimulate consumer demand for high quality local and international film, television and independent video content.”

The report shows that northern European countries, such as Denmark, Sweden, the Netherlands and the UK, have the highest shares of digital spending on home entertainment, at 85.3%, 77.3%, 75.1% and 59.6% respectively. All have higher than average broadband penetration for the region. …